U.S. Consumers' Willingness to Pay for Food Labeled 'Genetically Modified'

Author

Benjamin M. Onyango, Rodolfo Nayga and Ramu Govindasamy (govindasamy@aesop.rutgers.edu)

Agricultural and Resource Economics Review, 2006, vol. 35, issue 2

Abstract: This study analyzes U.S. consumers' choice of cornflakes under five different labeling statements. Using a nationwide survey and choice modeling framework, results indicate that consumers value labeling statements differently, depending on the information contained on the label. The random parameter logit model results indicated that, compared to cornflakes that have no label information, cornflakes labeled "contains no genetically modified corn" have a value of 10 percent more, the label "USDA approved genetically modified corn" has a value of 5 percent more, and the label "corn genetically modified to reduce pesticide residues in your food" has a value of 5 percent more. The results also suggest that consumers negatively valued the label "contains genetically modified corn," paying 6.5 percent less, and the label "may contain genetically modified corn," paying 1 percent less than the product that has no label information.

Keywords: genetically modified foods; labeling genetically modified foods; random parameter logit model; Demand and Price Analysis (search for similar items in EconPapers)
Date: 2006
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Journal Article: U.S. Consumers' Willingness to Pay for Food Labeled ‘Genetically Modified’ (2006) 
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